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Swiss insurer likely to raise bid

RSA to recommend revised £5.6bn offer from Zurich

Stephen HesterRSA Insurance, the group led by former RBS chief executive Stephen Hester (left), is likely to recommend a revised proposal from Zurich.

A possible cash offer for the company at 550p per share was submitted just before the expiry of a takeover panel deadline.

RSA shareholders will retain the right to receive the 3.5p interim dividend announced on 6 August.

RSA said it has indicated to Zurich that it would be willing to recommend the revised offer which values the company at £5.6 billion and represents an 11% premium on last night’s close.

It has agreed to an extension of the takeover deadline until 22 September to enable both parties to conclude their ongoing discussions.

The UK insurer added “there can be no certainty that any firm offer will be made.”

If it goes ahead it would make the Swiss firm the leader in British insurance. Zurich said it reserved the right to make an offer below 550p.

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